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At the Toronto International Film Festival last month, Cynthia Erivo returned to cinemas in Prima Facie — but the film’s financing signaled a change behind the scenes. A growing group of private investors and smaller production companies are stepping into movie financing, shifting where films get made and which stories reach theaters.
An attractive investment opportunity
Prima Facie was partly produced by Camelback Productions, a smaller studio led by CEO Anita Verma-Lallian that aims to bankroll independent features. Camelback has also been involved with films such as Doin’ It and Runner, which feature performers like Lilly Singh and Owen Wilson.
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Verma-Lallian says independent financing can compress timelines. “A lot of times, if you go through the traditional Hollywood system, it could literally take five to 10 years from the time of inception,” she told reporters. “Whereas if you’re doing it independently, we’ve made some movies in as quickly as a year.”
The shorter turnaround often reduces costs and can speed returns for investors. Verma-Lallian, who previously worked in real estate investing, described Hollywood as an appealing diversification opportunity for nontraditional backers. She also argued that conventional sources of financing are growing more risk-averse, opening space for new capital to fund projects that might otherwise struggle to get greenlit.
Private capital moves deeper into the industry
Beyond individual production outfits, larger private equity firms are buying into the infrastructure of entertainment. Silver Lake is a backer of talent agency WME, while Blackstone is an investor in content company Candle Media. These moves give financiers more influence over the value chain, from talent representation to distribution.
Consulting firm AlixPartners, in its 2026 Media and Entertainment Industry Predictions report, said private equity investors are expanding in media with targeted strategies. The report noted that investors seek to own intellectual property and audiences, building businesses that remain profitable regardless of which major studio lands the next blockbuster.
Major streamers such as Netflix and Amazon continue to push content spending higher, but traditional studios are confronting a contracting release slate and potential consolidation. The article cited forthcoming moves involving Paramount and Warner Bros. Discovery, a backdrop that can create opportunities for nimble independents and their backers.
Why IP and audiences matter
For dealmakers, strong intellectual property has become a scarce asset. Alex Michael, senior managing director at LionTree, emphasized this at the Financial Times’ Business of Entertainment Summit: “IP has never been more valuable. It’s never been harder to find.”
LionTree is an independent bank and investor that has backed companies like Fanatics and Fubo, advised on transactions such as Amazon’s acquisition of MGM and the CBS–Viacom merger, and is investing in Paramount pending the close of its deal with Warner Bros. Discovery. Michael said diversified entrants — including retail and toy brands — are also shaping the sector’s economics.
New money, new stories
The influx of private capital is changing not only who pays for films but also which films get made. Tech investor Lata Krishnan, who has begun investing in Hollywood, said these financiers often fund more diverse and riskier projects. “The big studios are often legacy organizations focused on a certain type set of films, and I think private capital has the ability now … to invest in films that are not traditional and that give voices to stories in a different way,” she told CNBC.
That appetite for fresh voices is visible in recent lower-budget breakout hits, from grassroots horror to creator-driven features. Films that began outside conventional studio pipelines — including the internet-originated Backrooms and YouTuber Curry Barker’s Obsession — show how short-form and creator-led content can translate into box-office returns and attract younger audiences.
Speed and creative freedom
Investors often tout their agility as an asset. “It’s my capital. I don’t have to check in with anyone,” Krishnan said, describing the faster decision-making private backers can offer.
Producer and investor Elan Gale, co-founder of independent financier QWGmire and known for work on shows such as The Bachelor, argued that private equity can leave room for filmmakers to experiment. “I think the primary upside for filmmakers is that private equity investors are less likely to get into the nitty-gritty of the creative process and allow some of the exploration and some of the freedom that studios maybe can’t give filmmakers because they’re significantly larger companies with significantly more restrictive development processes,” he said.
Gale added that Hollywood is evolving around the twin forces of private capital and creator-led content. For investors, the prize is clear: owning compelling IP and reaching audiences that traditional studios have not fully served.
